Health care stocks are generally thought of as defensive plays
where investors can put their money to weather a market storm like
the one we've witnessed since the start of June. And while that is
certainly true, there are also some smaller health care stocks that
are much more volatile.
Today, I have three names in particular for you. These stocks
all trade for less than $5 per share, and as such, they are prone
to disproportionate losses when the market sells off. However, that
also means they are likely to score you outsized gains when the
market takes off again.
So if you believe the market is going to stage a comeback in the
next few months, these little health care stocks may be some of
this summer's hottest tickets.
PHC Inc. (PHC)
National health care company
) provides psychiatric services to individuals who have behavioral
health disorders. Most of its patients deal with some sort of drug
or alcohol dependency, and the company owns numerous outpatient
facilities and psychiatric hospitals across the United States.
PHC stock is up % since the start of 2011, and it has soared
159% in the last 12 months. The penny stock also posted a quarterly
revenue growth of 14% in its last income statement.
Genetic Technologies (GENE)
) operates in three business segments: genetic testing, licensing
and research. Based in Australia, GENE translates its genetic tests
into products and services.
It is up an incredible 367% since last June. More recently, GENE
has gained 152% in the last three months alone. With a 52-week
range of 65 cents - $9.80, this health care stock could see much
higher prices again.
Columbia Laboratories Inc. (CBRX)
Rounding out the list of health care stocks to buy is
Columbia Laboratories Inc.
), which develops bioadhesive drug delivery technologies. Its most
well-known product is CRINONE 8%, which is marketed across the
This pharmaceutical company has watched its stock value climb
211% in the last year, compared to much smaller gains by the
broader markets. More recently, CBRX is up 56% since the start of
2011. This penny stock is currently trading at nearly four times
its 52-week low of 88 cents.